Despite facing numerous challenges, such as inflation and a rising cost of living, Universal Traders Sacco (UTS) maintained a resilient stance, adapting to market dynamics to achieve excellent financial performance in 2024. The Sacco enhanced its efficiency by embracing technology and upholding strong governance standards, allowing it to soar above the prevailing economic and social challenges.
To drive growth in 2025, the Sacco management has focused on innovation and adapting to the evolving market through strategic initiatives. Last year, UTS reported notable growth in all key operational areas, demonstrating a solid financial foundation for an institution whose core mandate is to empower members economically and socially by offering exceptional, affordable, and diverse financial services tailored to their needs.
The increasing demand for loan products among members contributed to the expansion of the Sacco’s loan portfolio, which grew to over Ksh 1.23 billion last year. This growth was bolstered by rising confidence from members, who appreciated the Society’s ability to meet their financial needs adequately.
“Our Sacco continues to offer competitive products and services that meet the diverse needs of our members, which is reflected in our overall growth and positive financial position.”
~ Mr. Fredrick Ngumbi, Chairman
As a result of the expanding loan book, total assets rose to Ksh 1.59 billion as of December 31, 2024. With improved nationwide outreach, UTS’s membership increased to 63,567, while members’ deposits surpassed Ksh 958 million.
“Our Sacco continues to offer competitive products and services that meet the diverse needs of our members, which is reflected in our overall growth and positive financial position,” said Mr. Fredrick Ngumbi, Chairman, UTS Board of Directors. He made these remarks during the 7th Annual Delegates Meeting held in Machakos.
Mr. Ngumbi noted that the Sacco has strengthened its capital base to ensure future stability and encouraged members to reinvest their annual returns. The Society distributed improved annual returns to members for the year 2024, with the Chairman committing to ensuring that members benefit from the Sacco’s success.
“Effective credit management remains a cornerstone of our operations. We have enhanced our loan approval processes and improved our risk management strategies. We are also implementing more robust monitoring procedures,” Mr. Ngumbi explained. These changes include adopting a more stringent credit risk evaluation tool, offering flexible repayment plans, and launching financial literacy programs to educate members on responsible borrowing.
“We are dedicated to further improving our credit management systems to ensure the continued protection of our members’ interests,” Mr. Ngumbi added.
In 2024, the Sacco received several national awards for its achievements in serving members. It bagged the second-best award for the best DT Sacco in capitalization and the second-best award in technology optimization among community-based Saccos. This recognition highlights the Sacco’s ability to consistently grow its capital base by controlling expenditures and retaining surplus, building its institutional capital for future growth.
UTS was also recognized and awarded as the best financial institution during the Agricultural Show of Kenya events in Machakos, Embu, and Kitui counties, elevating the Sacco’s brand nationally.
Future-ready Sacco
The UTS Board of Directors and management are leveraging technology to improve service delivery, spur growth, and enhance its impact on members’ livelihoods. The Sacco has already upgraded its mobile banking platform, enhancing features related to mobile loans and digital payment options.
In another strategic initiative, the Sacco is expanding its reach to promote financial inclusion, especially in remote areas, by establishing partnerships at the local level. “We will also strengthen communication channels with members to ensure transparency in our operations and decision-making processes,” said Mr. Ngumbi. Additionally, the Sacco is introducing new financial products, including investment opportunities, wealth management services, and tailored loan products that reflect the changing needs of its members. “We aim to position the Sacco as a leading provider of financial services that cater to the diverse needs of our members,” stated the Chairman.
Mr. Ngumbi announced that the Sacco will launch a second funds mobilization drive starting April 1, 2025, following a successful campaign last year. This initiative encourages members to save more with the Sacco, ensuring long-term financial health. The Sacco has also partnered with the Micro Enterprise Support Programme (MESPT) and the Agricultural Finance Corporation (AFC) to maximize benefits for its members.
Furthermore, the Sacco leadership has developed an education and training plan for members and delegates, focusing on loan management and investment strategies. This program aims to empower them with the knowledge needed to make informed financial decisions. “We believe that an informed and educated membership base is crucial for the long-term success of the Sacco. We have invested in educational activities to equip our members with the knowledge and skills to thrive,” said Mr. Ngumbi.
The Sacco recognizes that teamwork is essential for harnessing collective strength to benefit its members. “We operate on a foundation of integrity, ensuring transparency and trust in every interaction. Our commitment to building reliable networks allows us to create strong connections that lead to lasting impacts within our community,” said Mr. Dominic Mutunga, CEO.
He added that through consistent service delivery, they strive to offer dependable solutions that members can rely on. “Member satisfaction is at the forefront of our operations, as we prioritize their needs and aspirations in everything we do. Our dedication to our members’ success and well-being drives us to continually enhance their experience,” he noted.
Overall, the Sacco’s strategic approach reflects its commitment to sustainability and growth, while embracing inclusivity and addressing various challenges in financial services. This positioning makes UTS more than just a financial service provider. “We are partners in progress, working together to build a prosperous future for SMEs, farmers, civil servants, individuals, and institutions alike,” stated Mr. Mutunga.
